Consumer Duty and UCITS Funds

Supporting UK Financial Advisers in Delivering Good Outcomes

The introduction of the FCA’s Consumer Duty represents one of the most significant regulatory shifts in the UK advice landscape in recent years. Its core objective is clear: to ensure that firms consistently deliver good outcomes for retail clients.

For financial advisers, Consumer Duty has sharpened the focus on how products are selected, assessed and monitored throughout the client journey. Investment solutions must now demonstrate not only suitability, but also ongoing value, transparency and alignment with client needs.

What Consumer Duty Means for Advisers

Under Consumer Duty, advisers are expected to evidence:

• Clear understanding of a product’s intended target market
• Confidence that a product offers fair value relative to cost and outcomes
• Transparent communications that clients can understand
• Ongoing monitoring and review to ensure solutions remain appropriate over time

This places greater importance on robust product governance, reliable data and consistent reporting from fund providers.

The Role of UCITS Funds in a Consumer Duty Framework

UCITS funds remain a core building block in many UK advice portfolios. Their established regulatory framework and standardised features can support advisers in meeting Consumer Duty expectations.

Clear Product Governance

UCITS funds operate within a well-defined regulatory structure, with clearly stated investment objectives, risk limits and liquidity requirements. This clarity supports advisers when assessing product purpose and alignment with specific client segments.

Transparency and Comparability

Standardised disclosures, daily pricing and regular reporting allow advisers to compare UCITS funds across asset classes and strategies. This transparency supports both initial due diligence and ongoing reviews.

Value for Money Considerations

The UCITS framework accommodates a wide range of investment approaches, including active, passive and blended strategies. This flexibility enables advisers to assess whether costs remain proportionate to expected outcomes and client needs.

Ongoing Monitoring and Oversight

Daily liquidity and frequent portfolio reporting can assist advisers in meeting ongoing suitability and monitoring obligations. This is particularly relevant as Consumer Duty places increased emphasis on outcomes over time, not just point-of-sale assessments.

Supporting Advisers in a Changing Regulatory Environment

As Consumer Duty continues to evolve from implementation into supervision, advisers face growing expectations around documentation, oversight and evidence of good outcomes. Working with fund solutions that are clearly positioned, transparent and well governed can help reduce complexity and support robust advice processes.

UCITS funds, when used appropriately, remain a practical and familiar structure for advisers seeking to balance regulatory requirements with the needs of clients.

Looking Ahead

Consumer Duty is not a one-off regulatory exercise, but an ongoing obligation that will continue to influence advice models, product selection and portfolio construction. For advisers, the focus remains on delivering demonstrable value, clarity and consistency for clients.

Within this context, well-structured UCITS funds can continue to play a supportive role in helping advisers meet their obligations while maintaining high standards of client care.

Alicia Sims

Marketing Manager